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International Aviation priorities.

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M2 PRESSWIRE-29 April 2005-US DEPT OF TRANSPORTATION: International Aviation priorities(C)1994-2005 M2 COMMUNICATIONS LTD

RDATE:28042005

Remarks of Jeffrey N. Shane Under Secretary for Policy U.S. Department of Transportation.

Phoenix Sky Harbor International Airport Aviation Symposium 2005 Phoenix, Arizona.

It is a pleasure to be here in Phoenix after too long a hiatus. The Annual Phoenix Sky Harbor Aviation Symposium has emerged over the years as one of the most important gatherings for the aviation community, and it is therefore a privilege to be able to speak to you today.

I would like to take a few moments to discuss some big issues from the perspective of the U.S. Department of Transportation: where we believe international aviation is headed, and where we believe it should be headed.

I would like to begin by bringing you greetings from Secretary Mineta. Under the Secretarys leadership, we are working on a variety of important international aviation matters.

Safety

Everyone knows that the promotion of safety is DOTs top aviation priority, but not many are aware of some of the important steps we are taking to enhance the quality of safety management around the world. For example, Secretary Mineta recently returned from a highly successful trip to four East and South Asian nations. In India, he announced an aviation cooperation program that will assist India in modernizing its aviation infrastructure and accommodating traffic growth. The program will utilize both public and private sector aid to support initiatives such as technical assistance, job training, and personnel exchanges between the U.S. and Indian governments.

With the help of a number of private sector partners, we have launched a similar program with China and hope to do the same elsewhere. We pursue these programs because we know that, no matter how many headlines new international services generate, those services will not succeed unless passengers and shippers can rely on the carriers, airports, and the air traffic control systems of multiple nations to function safely. It is very much in the interests of the United States to work with our partners to meet those expectations.

Also in the international safety arena, we are working with our Canadian, Mexican, and European partners on an exciting initiative that concerns fractional ownership operations.

Private operations using fractionally-owned aircraft are common in U.S. aviation, and our regulations accommodate those operations without compromising safety. As international fractional operations proliferate, however, they confront differing regulatory treatment from different aviation agencies. We have responded by seeking to develop a common regulatory approach that could govern fractionals more consistently when they operate internationally. In this way, we hope to make certain that this increasingly popular form of international aviation can grow, without sacrificing vigorous and effective safety oversight in the process.

As we take these steps forward in international aviation, we should also endeavor to avoid taking any steps back. Last month, French President Jacques Chirac reportedly proposed an international airline fuel and ticket tax, the proceeds of which would be used to provide development aid to the nations of Africa. It will come as no surprise that many in the aviation community oppose this tax, and for very good reasons.

Today, fuel costs are second only to labor costs when it comes to...

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